Construction progress at Tumpang Pitu gold mine reaches 80%

PT Bumi Suksesindo (BSI), a subsidiary of IDX-listed gold mining company PT Merdeka Copper Gold Tbk, said that mining construction work at its Tumpang Pitu (or Tujuh Bukit) gold concession in Banyuwangi, East Java, has reached 80 percent, paving the way for the company to start gold production in January of next year at the latest.

BSI Director Arif F. Djaafara was quoted by Bisnis Indonesia and Kontan as saying Wednesday that while current rainy weather condition has hampered construction activity, the company remains optimistic that it could be completed by the end of this year.

He said that the Tumpang Pitu gold project has a mine life of 10 years. He said that BSI has spent about US$1 million for exploration, and another $1 million for construction activity.

According to 2012 JORC, the Tujuh Bukit mine holds ore reserves of 90 million tons in its oxide layer. The project is expected to produce 90,000 ounces of gold and 300,000 oz of silver per year from late 2016 to 2025.(*)